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Notice Regarding Loss from Equity Method Investments and Loss on Revaluation of Investment Securities on Non-consolidated Financial Statements
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Tokyo, July 29, 2016 - Mitsubishi Heavy Industries, Ltd. (MHI) today announced the following information regarding the consolidated first quarter of its current 2016 fiscal year, i.e. the three-month period ended June 30, 2016.
1. Loss from equity method investments
In the consolidated first quarter the Company booked an equity method investment loss in the amount of 18,880 million yen from its holdings in Mitsubishi Motors Corporation (MMC). As a result, MHI's total losses on equity method investments in the quarter reached 20,758 million yen.
2. Loss on revaluation of investment securities booked to non-consolidated financial statements
In the consolidated first quarter MHI booked a loss on revaluation of MMC shares in the amount of 57,999 million yen, to reflect the substantial decline in the shares' current value from the book value listed in the non-consolidated balance sheet. As MMC's results as an equity method company have been factored into the consolidated first quarter, impact on MHI's consolidated earnings are as noted in Item 1.
3. Impact on consolidated earnings
The foregoing information has been factored into the Company's outline of FY2016-1Q results released separately today.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.